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Minimum wage in Minnesota

Minimum-wage rate will be adjusted for inflation on Jan. 1, 2019

Minnesota’s minimum-wage rates will be adjusted for inflation Jan. 1, 2019, to $9.86 an hour for large employers and $8.04 an hour for other state minimum wages.

Under Minnesota law, the commissioner of the Department of Labor and Industry is required to determine and announce the inflation-adjusted minimum-wage rate each year by Aug. 31. This year, the change in the price index used for this purpose is an increase of 2.16 percent. Read news release here.

State and federal minimum-wage law

The state minimum-wage is higher than the federal minimum-wage, so employees who are covered by both laws must be paid the higher state minimum-wage.

Minimum-wage rates apply to all hours worked, whether part time or full time.

Employees must be paid at least the current minimum-wage rate, no matter how they are paid.

Tip credit

No employer may take a tip credit against minimum wages in Minnesota.

An employee must be paid at least the minimum wage per hour, plus any tips the employee might earn.

Exempt employees

A partial list of exempt employees includes: bona fide executive, administrative or professional workers; babysitters; volunteers of nonprofit organizations; and employees subject to the provisions of the U.S. Department of Transportation (drivers, drivers’ helpers, mechanics and loaders).